![BitTorrent [New]](https://s2.coinmarketcap.com/static/img/coins/64x64/16086.png)
Web3 casinos have generated substantial wealth in 2023, having accumulated approximately $5 billion in cryptocurrency from around 4,000 wallets, as indicated by on-chain data. A report by Chainalysis, a New York-based blockchain forensic company, revealed on August 5 that high-frequency players have massively influenced the web3 gaming economy, with each wallet depositing an average of $7,000 in crypto.
Impact of High-Frequency Players on Web3 Casinos
Although the number of crypto whales participating in web3 casinos is relatively modest, their financial impact is substantial. About 500 of these whales, each contributing an average of $25,000, accounted for a total transfer of $320 million in 2023. This data highlights a stark contrast between the contributions made by regular players and those of high-stakes clients.
Transaction Trends: Personal Wallets vs. Crypto Exchanges
According to Chainalysis, most transactions on web3 casinos are conducted through personal wallets, with many players frequently cashing in and out using these wallets. Moreover, it is noted that a significant number of users also transfer funds to and from exchange accounts. Specifically, personal wallet transactions account for 61% of deposits and 70% of withdrawals related to web3 casinos, while crypto exchanges represent 38% of deposits and 29% of withdrawals. As a result, since many players do not take measures to obscure their financial activities on-chain, businesses can glean insights into user behaviour, including holdings, spending habits, and overall engagement across blockchain platforms. Chainalysis commented that this information allows businesses to fine-tune strategies, enabling better segmentation and user engagement.
Concerns Over Money Laundering Risks
Over the last four years, web3 casinos have experienced a consistent increase in capital inflows, amassing a total of $78.7 billion in cryptocurrency. However, Chainalysis has also raised cautionary flags regarding potential risks linked to these platforms, noting that they could be utilised for money laundering purposes.
Ethereum Developer Critiques the Crypto Industry
In a separate commentary, Ethereum developer Péter Szilágyi criticised the crypto industry on his X account. As Ethereum faced a sell-off, he criticised the sector’s focus, suggesting that many participants are more interested in achieving notoriety, reminiscent of Vitalik Buterin, rather than producing meaningful products that add real value.
Szilágyi labelled the crypto industry as impulsive and likened it to a casino where individuals buy luxury cars during market upswings and suffer losses during downturns, without contributing significantly to society. He compared the industry’s direction unfavourably against companies like SpaceX, arguing that if the crypto sector cannot deliver genuinely useful products, it might be time to reconsider its existence. He pointed out that while Bitcoin aims to establish itself as a secure asset, the rest of the crypto space seems preoccupied with trivial pursuits.
This critique emerges during a challenging period for Ethereum, which has recently witnessed a significant decline in value, dropping 32% over a week-long stretch as the broader crypto market faces its largest downturn of the year. Currently priced at $2,360, down 12.05% for the day, Ethereum has fallen below the lower Bollinger Band threshold of $2,650, suggesting it may be severely oversold. Just earlier, it had dipped to around $2,200 on Monday morning.
Over the past 24 hours, the crypto market has seen over 278,000 traders liquidated, with Bitcoin leading the way with liquidations amounting to $362 million, closely followed by Ethereum’s liquidations at $345.7 million. The total open interest in the crypto market has decreased by 18.7%, settling at $47 billion, leading to a notable slump in the overall cryptocurrency market, which saw its global market cap decline by 13.4% to $1.94 trillion. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
